+ Promoting a Personal Service Business
+ Last week 2 n What is marketing? More than just advertising! n Current situation and SWOT analysis n Who is your target market? n The marketing mix (4Ps) n Product what services and products will you offer? n Price at what price? n Distribution where will your salon(s) be located? n Promotion how will you promote your business or a new service?
+ This week 3 n Recap on the Promotional Mix n Plan a promotional campaign n Implement a promotional campaign and marketing strategies/tactics n Evaluate marketing performance
+ The Promotional Mix 4
+ What is promotion? 5 Communication by marketers/business owners that informs, persuades and reminds potential clients of your services and products in order to influence their purchasing/usage, their opinion or get some type of response from them.
+ Promotion mix/tools Direct Marketing/ Digital Advertising Public Relations Personal Selling PROMOTION Sales Promotion Sponsorship SMS Experiential /Event Website/ Blogs Viral/Buzz
+ Planning a Promotional Campaign 7
+ Brand level marketing n Most marketing communications occurs at the brand level. n A well known and respected brand is an invaluable asset. n A successful brand can create barriers to entry for competitors. n This is the key means for differentiating one company s offering from competitive brands.
+ Campaign 9 n Your promotional activities should be coordinated into a CAMPAIGN n You may aim the campaign at different groups of customers n You may have different campaigns running in different locations e.g. different salons n Begins with a CAMPAIGN OBJECTIVE n To launch a new service successfully e.g. Acrylic nails n To attract a different group of customers e.g. Men n Next work out the BUYING MOTIVE what motivates this purchase? E.g. Adding nail services to the salon n Convenience of all of your beauty needs in one place n Save time, have a manicure/pedicure while your colour sets n Get the same quality of service for your nails as your hair/body
+ Campaign theme 10 n A central idea for your campaign n The promotional appeal dressed up in a distinctive, attention-getting form n It expresses your service s benefits n Sometimes in the form of a slogan e.g. Oh! What a feeling! or The Spirit of Australia EXERCISE: What are some possible themes/slogans for our nail services campaign?
+ Setting your promotion budget Four common methods used to set the total budget for promotions: 1. All available funds (what s affordable) 2. Percentage-of-sales 3. Matching the competition do they know what they re doing? 4. Task or objective - set a specific objective and then set your budget e.g. set up a salon in a new suburb, how much will it cost for each item e.g. staff for personal selling, advertising in the local newspaper etc. (much harder for small businesses to do this)
+ Promotion legislation 12 n Trade Practices Act n Deceptive and misleading advertising n Certain marketing schemes e.g. multilevel/pyramid n Offensive/discriminatory advertising n Media and Communications Authority n Do not call register n Industry bodies e.g. Advertising Standards Bureau n Specific rules by media
+ Integrated Marketing Communications (IMC) n Each promotional mix element (advertising, sales promotions etc.) must be carefully coordinated this is called INTEGRATED MARKETING COMMUNICATION n IMC: The process of planning, creation, integration, and implementation of diverse forms of marketing communications that are delivered over time to a brand s targeted customers and prospects. n If a business uses different touch points it doesn t mean that they re sending different messages. One Look One Feel One Voice
+ Different target markets means n Different Advertising n Different Sales Promotions n Different In-store Promotions n Different Website Offers
+ Steps in developing IMC 1. Identifying the target audience who? 2. Determine response sought what do we want that audience to do or think? based on the Buyer Readiness Stages Awareness (Advertising, PR) Knowledge (Advertising, experiential marketing, PR) Liking (Advertising, sponsorship, viral) Preference (Sales Promotion, Personal Selling) Conviction (Sales Promotion) Purchase (Sales Promotion, POP Advertising, in-store displays) 3. Selecting a message that we wish to send 4. Selecting media that we wish to use 5. Selecting a message source e.g. trusted/credible, celebrity 6. Collecting feedback how much impact did we have? did it result in sales or leads
+ Selecting a message Message Content n Rational appeals, emotional appeals (fear, humour), Moral appeals (fear, guilt) n Awareness: rational appeals n Liking: fun, fantasy, feeling Message Structure n Draw conclusions or leave that to the audience? n Present strongest arguments first or last? Message Format n Headline, copy, illustration, colour
+ Buyer readiness stage: Awareness
+ Rational appeal
+ Emotional appeal
+ Moral appeal
+ Message format Copy Subheadings Headline Illustration
+ Implementing promotions 22
+ Traditional promotion mix Direct Marketing /Digital Public Relations Promotion Personal Selling Sales Promotion Advertising
+ New IMC tools Direct Marketing/ Digital Advertising Public Relations PROMOTION Personal Selling Sales Promotion Sponsorship SMS Experiential /Event Social Media/ Blogs Viral/Buzz
+ Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor. n Set objective: inform, persuade or remind n Set the advertising budget Advertising n How to execute your ad message n Select your media
+ Message execution 26 Slice-of-life One or more people using the product in an everyday setting Lifestyle Shows how a product fits in with a lifestyle Fantasy Creates a fantasy around the product or its use Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial evidence Builds a mood or image around the product, such as beauty, love or serenity Shows one or more people or cartoon characters singing a song about the product Creates a character that represents the product Shows the company s expertise in making the product Presents survey or scientific evidence that the brand is better or better liked than one or more other brands Features a highly believable or likeable source endorsing the product
27 http://www.youtube.com/embed/spm7gvzonqy EXERCISE: Which type of execution is used here?
+ Choose your media Media Attributes When to Use Newspaper Mass audience Excellent at reaching local market Short lead time Current Short life span Local retail Target specific geographic market Temporary offer Brand appearance not important Quick distribution of information needed
+ Choose your media Media Attributes When to Use Magazines Segmented audience Long life span; Pass-along readership Excellent reproduction Long lead times Not frequent Information intensive product Rely on look to create image Desire transfer of image from editorial content to product Television Combination of sight & sound allows more complex messages to be delivered Short duration & ads often ignored Cost efficient Market coverage flexibility Want to build brand awareness Require product demo Want to use peripheral cues Have adequate financial resources
+ Choose your media Media Attributes When to Use Radio Immediate delivery Short duration Good for reaching local market No visuals = eliminating complex messages/demos Mobile - able to reach TA anywhere Want to stimulate impulse purchase Reminder advertising Want to advertise offerings that change frequently Product is simple to understand Low advertising budget Outdoor Excellent reach potential Offers exposure near/at point of purchase Fleeting message delivery Want to create traffic for local business Segmenting audience based on geography Want to reach mass community audience
+ Public Relations Building good relations with the company s various publics (shareholders, consumers, employees, suppliers etc.) by obtaining favourable publicity, building up a good corporate image and handling or heading off unfavourable rumours, stories or events. n Tools: n News n Speeches n Special events n Written materials n Audiovisual materials n Corporate identity materials n Community service activities
+ All the marketing activities that attempt to promote immediate sales of a product creates urgency! Sales Promotions n Tools: n Samples n Coupons n Contests/competitions n Refunds n Price-packs n Loyalty programs
+ Purpose of Sales Promotions 33 n Use sales promotions to: n attract new triers n reward brand-loyal customers and thereby retain them n reduce the time between purchases n turn light users into medium or heavy users n lure consumers away from competitors n get rid of an old/mature product or service n The aim might also be to regain past purchasers who have stopped using your services.
Tools for Sales Promotions 1. Samples 2. Redeemable coupons 3. Cash-back offers 4. Cents-off deals or price packs 5. Premium offers give something for free 6. Patronage rewards reward points 7. Point-of-purchase (POP) promotions 8. Contests and games of chance (sweepstakes) and skill (contests)
35 Confidential 9/04/13
+ Group coupon deals 36 The Iconic vs http://www.bloomberg.com/video/ 82832894-cupcakes-offer-on-grouponturns-into-nightmare.html
+ Personal Selling involves two-way, personal communication between salespeople and individual customers. n Can be more effective than advertising due to two-way communication! Personal Selling
+ The role of sales people n The sales-force serves as a critical link between your business and your customers n The sales-force represents the business to the customers n The sales-force represents the customers to the business n Sales people are concerned with producing sales but should also be concerned with customer satisfaction and profit
+ The personal selling process Prospecting and qualifying Pre-approach Approach Presentation and demonstration Handling objections Closing Follow-up Identify qualified potential customers Learn as much as possible about the prospective customer Meet and greet the customer Tell the product story; sell the product benefits Clarifies and overcomes customer objections to buying Ask for the order To build customer satisfaction and repeat business
+ Relationship selling A sales practice that involves building, maintaining and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships.
+ Relationship vs traditional selling Traditional personal selling Relationship selling Sell products/services Focus on closing sales Limited sales planning Discuss product Assess product-specific needs Lone wolf approach Pricing/product focus Short-term sales follow-up Sell advice, assistance, counsel Focus on customer s bottom line Sales planning is top priority Build problem-solving environment Conduct discovery in scope of operations Team approach Profit impact and strategic benefit focus Long-term sales follow-up
+ Relationship selling Exercise: How can you and your sales force build relationships with your clients?
+ Direct marketing is an interactive system of marketing which uses one or more advertising media to effect a measurable response and/or transaction at any location. Direct & Digital Marketing Digital marketing entails interaction with known customers and others in the marketing channel, on a one-to-one basis, often in real time, to maintain value-laden relationships and to generate a measurable response and/or transactions using electronic network tools and technologies.
+ Direct and online tools and techniques 1. Direct Print and Reproduction this involves mail-outs of letters, product lists, samples and paper-based and digital catalogues to a list or a known database of customers, or to a targeted group that the marketer wishes to convert to a database entry. 2. Direct Mail Printed materials sent by mail and conveying offers to consumers, whether targeted to the recipient by name, or to the business or household by a broader targeting method 3. Catalogues A printed listing of products, often featuring high quality reproduction of the items on sale
+ Direct and online tools and techniques 4. Direct Response television, radio and print marketing Use of mass promotion media combined with a direct response offer, usually involving telemarketing 5. Telemarketing The use of telephone operators in a variety of ways to attract new customers, to contact existing customers to ascertain satisfaction levels, or to take orders 6. Telesales Routine order taking by telephone operators
+ Direct and online tools and techniques 7. Electronic Dispensing and Kiosks Machines that dispense products (food) and services (ticket), usually by inserting cash or stored value cash 8. Direct Selling Selling directly to consumers or to businesses rather than using reseller, such as agent or retailer 9. Electronic Shopping Purchasing via an electronic bulletin board, network or via interactive cable television
+ Website
+ Online performance measurement Hits Page Views Location Origin Visits
+ Type of non traditional marketing 1. Viral marketing (1996) 2. Blogs (1995) 3. Brand pushers paid actors 4. Overt celebrity marketing/sponsorships 5. Product placements 6. Marketing inside pop and rap music 7. Cross promotions (control through cooperation) e.g. magazines with cosmetic giveaways 8. Place based promotions communicating in audience captive environments such as schools, hospitals, airports e.g. communications/ adverts on meal trays in hospitals, napkins on airlines, ads on airline videos 9. Sponsorships celebrity seeding, gifting the talent control through patronage (not overt)
+ New Communications: Viral n Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message's exposure and influence. n Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands, to millions. n WOM/brand pushers or can be via an electronic platform (SMS, email)
+ Blendtec 51 Will it blend? http://www.youtube.com/watch? annotation_id=annotation_401075&feature=iv&src_vid=flreo24 WYeQ&v=_S8sxpK4_iA
+ Viral communications n Should capture the imagination be intriguing or fun n Should be attached to a product that is easy to use of highly visible n Should be well targeted n Should be associated with a credible source n Should combine technologies
+ Critique viral communications n Incurs little expense as it harnesses personal recommendation n The act of passing on the referral message is voluntary rather than paid testimonial or mass ad so more favourably received n The message is passed to friend, family members and work colleagues that have similar interests to more likely to be interested in the message n Limited control over receipt n Measurement challenges
54 What every car salesman dreads! http://www.youtube.com/watch? v=q5mhpo2ydg8
+ Blogging n Blogs can be used as part of an integrated communication strategy to enhance and complement the rest of an organisation s communications activities. n Blogs need to be regularly updated daily or several times a week and tend to be produced outside the corporate marketing loop.
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+ Blogging n Blogs provide a bottom-up, grassroots method of sharing information about organisations through the web. n Build buzz and positive word of mouth promotion for the company and/or its products and services n Spark informal conversations about the organisation and/or its products and services n Offer an outlet for news and information not important enough, or even suitable for a press release, but still worthy of being communicated
+ Product placement n Product placement n Celebrity product placement n Marketing in rap and pop music: n Run DMC song My Adidas n Mercedes 112 song mentions n Lexus 48 song mentions n Gucci 47 song mentions n Cadillac 47 song mentions n Burberry (42 mentions)
+ Have you heard of Brand Pushers? n Hired novice actors who approach unsuspecting people in real life situations and slip them commercial message n Sony Ericsson used fake tourists sent to major tourist attractions to show new T68i phone with camera n Music Industry cool actors n Piaggio (vespa) paid good looking actors to ride around on their Vespas
+ Guerrilla Marketing n Operates on a low budget and is shocking in order to get publicity e.g. Vodafone Streaking incident at International Rugby game n Results in worldwide media coverage with no outlay
+ Others?
+ Measuring marketing perfomance 62
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+ Evaluating marketing activities 64 n Which promotions worked? Which didn t work? n Coupons returned n Website visits n Social media followers n Customer visits and feedback n Cost of acquisition (cost of marketing/number of customers attracted) n Leads (phone calls/emails) n Did you achieve your objectives? n Did you meet sales and profit targets? n Did you stick to your budget? n What s the recall for your business? Prompted/unprompted awareness. n Did you have the right people involved in marketing? Do you need to get more resources/get help? n What s the feedback from your customers? Revisit your marketing plan and SWOT!
+ Good luck! Enjoy the rest of your course J